Alibaba, down 8% this month, could see a big move on earnings, traders say

  • 📰 CNBC
  • ⏱ Reading Time:
  • 36 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 18%
  • Publisher: 72%

Nigeria News News

Nigeria Nigeria Latest News,Nigeria Nigeria Headlines

Alibaba, down 8% this month, could see a big move on earnings, traders say $BABA (via OptionsAction)

While the options market saw higher call activity ahead of the e-commerce company's earnings report Wednesday morning, generally a bullish signal, most of those calls were actually being sold — a sign that traders might be getting cold feet ahead of the results, says Dan Nathan, principal at RiskReversal.com.

The options market is implying a higher-than-usual 5% move in either direction for Alibaba's stock after earnings, so traders likely decided that a 5% move downward wasn't worth the risk, said Nathan, who also appears as a trader on CNBC'sThe most active strikes being sold were the May $180 and June $190 calls, he said, which meant people weren't convinced that the next few months would bring more gains for the $174 stock.

"If you look at it on a five-year basis, that just kind of heightens what we would say is that massive, massive support at that double bottom from late last year," he said. "They better put up some good numbers to keep it around here."

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 12. in NG

Nigeria Nigeria Latest News, Nigeria Nigeria Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Disney reports earnings after the bell, as the company caps a big quarterDisney closed its acquisition of Fox's entertainment assets during the quarter. The company has since unveiled details for its Disney+ streaming service, which will launch this fall. $DIS bullish
Source: CNBC - 🏆 12. / 72 Read more »

Symantec stock plummets as CEO steps down amid earnings missSymantec Corp. shares were slammed in after-hours trading Thursday, after the company reported an earnings miss and disappointing guidance and Chief...
Source: MarketWatch - 🏆 3. / 97 Read more »

One positive: The market has a good track record of bouncing back after big down MondaysThe S&P 500 is headed for one of its worst trading days of the year but history shows sometimes there's some relief later in the week.
Source: CNBC - 🏆 12. / 72 Read more »

Gundlach says stock market still in a bear market, sees high chance of tariff hikeJeffrey Gundlach of DoubleLine says stocks continue to behave like they’re in a bear market and that there’s a more-than-50% probability the U.S. raises tariffs on Chinese goods, escalating the trade conflict. Still? I must have missed that memo The next right call he makes will be the first one he’s made in years. But yeah, let’s keep putting him on TV and getting his thoughts.
Source: MarketWatch - 🏆 3. / 97 Read more »

Williams-Sonoma CEO says the company saw tariff hikes coming, hired more US workers'I think that you're better off preparing for the worst,' Laura Alber said in a one-on-one interview with 'Mad Money's' Jim Cramer Monday. Jim went to a Giants game. Wow. Why is her neck so red
Source: CNBC - 🏆 12. / 72 Read more »